Indiana's Financial Literacy Graduation Requirement
Starting with the class of 2028, Indiana students must pass a personal finance course to graduate. Here is what counts and how the new diploma changes it.
Does Indiana require financial literacy to graduate?
Yes. Indiana law requires students in the class of 2028 and later to complete instruction in personal financial responsibility, taught as a separate subject, to graduate. It applies to public, charter and state-accredited nonpublic schools. The usual course is Personal Financial Responsibility, one semester worth one credit. From the class of 2029, it is a named one-credit requirement in the new Indiana Diploma.
Key facts
- Class of 2028 is the first class that must complete the course to graduate. Source: Indiana Code 20-32-4-17 and 20-30-5-19.
- 1 semester, 1 credit: Personal Financial Responsibility (4540) is the preferred course. Source: Indiana Department of Education memo, February 2024.
- Class of 2029: the new Indiana Diploma counts 1 personal finance credit toward math. Source: Indiana Department of Education.
- Grades 8 to 12: schools can teach the course in any of these grades. Source: Indiana Code 20-30-5-19.
Timeline: how the rule got here
Indiana's requirement is new enough that no class has graduated under it yet, and the new diploma adds a second layer. Here is the order things happen in.
| When | What happened |
|---|---|
| 2023 | Senate Enrolled Act 35 made personal financial responsibility a graduation requirement, starting with the class of 2028. |
| February 2024 | The Department of Education named Personal Financial Responsibility (4540) the preferred course, for grades 8 through 12. |
| Class of 2028 | First graduating class that must complete the course. |
| October 1, 2028 | Indiana's current graduation requirements sunset. Schools may opt students into the new diploma before then. |
| Class of 2029 | First class required to earn the new Indiana Diploma, which counts the credit toward math. |
What counts as meeting the requirement
State law requires personal financial responsibility to be taught as a separate subject, not folded into another class, and the school has to certify to the Department of Education that each student completed it before they can graduate. In Indiana a one-semester course is worth one credit, so this is a one-credit course.
For the class of 2028, the preferred course is Personal Financial Responsibility (4540), and it satisfies a Directed Elective. Personal Finance and Banking (7150) is an alternative the department recommends mainly for students on the finance and investment career pathway. From the class of 2029, the new Indiana Diploma lists three courses for its one personal finance credit: Personal Financial Responsibility, AP Business with Personal Finance, and Personal Finance and Banking.
The law also sets what the course covers: spending and saving, bank accounts and how to judge a bank's services, debt, what an inheritance means, savings, retirement and investment accounts, federal and state income tax returns, local taxes, insurance, loan applications, interest rate math, credit and credit scores, and simple contracts.
If your kid's school offers the course in 8th grade, we think it is worth a look. Most of these topics make more sense before a first job and a first bank account than after.
What parents can do at home now
The course list reads like a first year of adult life: bank accounts, taxes, loans, credit. Kids get more from it when they have already watched their own money come in and go out. An allowance is the simplest way to start. If your kid does not have a phone or tablet yet, you can manage their allowance from your own phone and connect their device later.
Start the habit before the class does
On their own phone or tablet, your child can watch their balance, take on quests, and ask to cash out in the Penny Time app. You set the allowance and approve each request.
How to explain this to your kid
Match the conversation to their age.
- Ages 5 to 7: Let them hand over the money at a store and wait for the change. Then count it together so the numbers feel real.
- Ages 8 to 12: Put a price on something they want and help them work out how many weeks of allowance it takes. Our allowance calculator can help you pick an amount to start with.
- Ages 13 and up: Tell them Indiana now requires the course and ask which year they plan to take it. Then preview the interest rate unit with our compound interest calculator. Point out that the same math works against you on a loan.
Frequently Asked Questions
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Yes. Starting with the class of 2028, Indiana students must complete instruction in personal financial responsibility, taught as a separate subject, to graduate. It applies to public, charter and state-accredited nonpublic schools.
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The Department of Education names Personal Financial Responsibility (course 4540) as the preferred option: one semester, worth one credit. Under the new Indiana Diploma, AP Business with Personal Finance and Personal Finance and Banking also count.
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From the class of 2029, the new diploma lists one credit of personal finance inside its seven math credits. For the class of 2028, the Personal Financial Responsibility course counts as a Directed Elective.
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Possibly. State law lets schools teach the course to students in grade 8 through grade 12, so some schools may offer it in 8th grade. Ask your school which grades it offers.
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One semester is a solid base, but the habits that stick usually start at home. A kid who has run their own allowance for a few years will find the course easier to connect to real life.
Sources
- Senate Enrolled Act 35 (2023), Indiana General Assembly (PDF) - the separate-subject requirement for the class of 2028 and later.
- Indiana Code Title 20 (2026), sections 20-30-5-19 and 20-32-4-17 - grades 8 through 12, the course topics, the class of 2028, and school certification before graduation.
- Indiana Department of Education, financial literacy - one semester of personal finance toward math from the 2029 cohort.
- Indiana Department of Education, course guidance memo (PDF, February 2024) - course 4540 as the preferred option, one semester and one credit, and the Personal Finance and Banking alternative.
- Indiana Department of Education, 2026-27 Indiana Diploma course eligibility (PDF) - the three courses for the personal finance credit, the October 1, 2028 sunset, and the class of 2029 start.
- NGPF Live US Dashboard - Indiana's standalone course, adopted April 2023, with 2028 as the first graduating class.
This is general information about education policy, not legal or financial advice. Graduation requirements change and vary by state. Verify current requirements with your school or the Indiana Department of Education before relying on any of this for your kid's plan.
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